On 14 September 2023, the FCA published a speech, delivered by its Chair, Ashley Alder, at the Eurofi Conference. The speech focuses on international collaboration and the modernisation of financial services regulation in the UK.
Mr Alder’s speech includes the following remarks:
- The FCA welcomes the International Organisation of Securities Commission’s (IOSCOs) recent endorsement of climate reporting standards issued by the International Sustainability Standards Board (ISSB), and is now looking forward to working with its European partners to embed the ISSB standards across international capital markets.
- Although many regulators are still in the early stages of developing their approaches to crypto assets, the FCA has already seen vital collaboration through the crypto and digital asset working group within the IOSCO Fintech Task Force. Here the FCA has been leading 130 EU and global regulators to develop critical global standards, delivering a comprehensive crypto and digital asset consultation report earlier in 2023.
- The Financial Stability Board (FSB) and IOSCO are heading towards a set of concrete policy outcomes for non-bank financial intermediation (NBFI) activity informed by analysis and data drawn from both market regulators and central banks. The FCA is closely involved in driving this work together with its European partners, co-efficient international investment flows based on strong cooperation and ensure that we can address risks which frequently know no borders. All of this will enable both EU and UK businesses to grow and thrivechairing a key IOSCO group with the French Autorité des Marchés Financiers to develop a full suite of NBFI policy proposals. It is also looking forward to contributing to the FSB’s upcoming Leverage Working Group.
- Whilst working on its programme to tailor financial services regulation to UK markets, the FCA will ensure that any reforms are effective and proportionate, simplifying and standardising requirements where possible and avoiding “change for change’s sake”. It will work alongside EU and global partners who are also pursuing pathways to sustainable economic prosperity whilst tackling the same financial sector risks, sharing and reflecting on best practice. It will also contribute to and promote strong global regulatory standards, and in developing its rules, it will ensure that it considers the costs to firms who are globally active and are thereby subject to different regulatory regimes.
- The FCA wants to encourage efficient international investment flows based on strong cooperation and ensure that risks can be addressed which frequently know no borders. All of this will enable both EU and UK businesses to grow and thrive. The FCA therefore welcomes closer collaboration, working in partnership when developing common standards to avoid unnecessary and costly regulatory fragmentation.